Libby Cantrill

The bond market is behaving as expected by pricing in higher growth, inflation concerns, and higher deficits. This environment creates a steeper yield curve, which is good for investors and provides a good roll-down opportunity.

The US-Iran détente does not eliminate geopolitical risk; oil markets are pricing in a perfect resolution, but supply normalization will take months or longer, sustaining an oil price premium through year-end and possibly into 2027.

In the SOTU, President Trump explicitly called on Congress to act regarding "institutional ownership" of single-family homes. While PIMCO notes Congress is unlikely to pass significant legislation before the midterms, the "Bully Pulpit" risk is high. Continued rhetoric attacking institutional landlords creates headline risk and potential regulatory overhang for Single-Family Rental REITs. SHORT. Sentiment will remain negative on this sector as long as the administration targets it as a solution to housing affordability. Gridlock in Congress prevents any actual legislation, leading to a relief rally.

In the SOTU, President Trump explicitly called on Congress to act regarding "institutional ownership" of single-family homes. While PIMCO notes Congress is unlikely to pass significant legislation before the midterms, the "Bully Pulpit" risk is high. Continued rhetoric attacking institutional landlords creates headline risk and potential regulatory overhang for Single-Family Rental REITs. SHORT. Sentiment will remain negative on this sector as long as the administration targets it as a solution to housing affordability. Gridlock in Congress prevents any actual legislation, leading to a relief rally.